The key driver of the future silver price is discussed in my interview with Turd at TFMetals Report. Most precious metal analysts focus on either technical analysis, market fundamentals or the debt based fiat monetary system as clues to where the price of silver is heading in the future. However, I believe key to silver’s future value is tied to ENERGY.

TFMetals: silver investment demand… back to silver and crude. crude oil and energy is biggest input to most manufacturing. from that standpoint silver and crude go together. now hft algos run everything. price of crude and euro with dollar go one-to-one. crude goes up and down via euro. currently down. you logo has EROI, explain in english why that is basis of what you do.

SRSrocco: sure, EROI is energy return on invested or on “energy invested”, Charles Hall coined term. EROI is the key to living, a person or a company or the Roman Empire. roman empire fell due to EROI. they go so big they couldn’t get more energy. in the 70’s EROI was 30 to 1, now at eagle fort its 5 to 1. Many oil companies are losing money. Chevron-Texaco and Conoco-Phillips are majors and they are losing money. we’ve seen peak production in top fields. we’ll go down from here. EROI is destroying system from within. why I’m big proponent of silver and gold.

TFMetals: before listener questions… most recent reports, updating trend you’ve been following. u.s. is net importer of phyzz silver.

SRSrocco: U.S. has been big silver importer for a while. India varies, they change due to investment on bar demand. U.S. silver imports peaked in 2011. Industrial consumption continues to fall. Investment demand will drive price, esp when it moves exponentially. I think speculation that JP Morgan is buying eagles is incorrect. insiders say big buyers are buying silver bullion.. good sign.

Steve , Thanks for sharing . Your devotion towards getting out the truth is very much appreciated. The endless flow of sensationalism that is pumped out by and large gets old. Your explanation on the subject of energy related tie ins helps to drive home an important message. Namely that this big party called American embellishment isn’t going to last much longer.

@Silverfreaky
That statement should not be taken seriously. You should not expect that China is going to be more sincere abouts it’s true Gold reserves than the US. Any fool can tell you any number as long as there is no independent audit who confirms those numbers. China has no interest at the current time to disclose it’s true holdings as they still and very actively engaged into Gold acquisition. There will be a time when that could change overnight but nobody knows when that is going to happen and what will be the trigger.

Since Obama signed a deal with Iran, we now have another big crude oil player on the world crude oil market. I really don’t see an energy issue for miners within the next 5 to 10 years. I believe a very serious stockmarket crash and/or a severe currency crisis within the same period is more likely to happen than a crude oil shortage. That is not to say that energy won’t ever have an impact on PM prices but for that to happen the cost of energy would have to rise significantly and it doesn’t look like that’s going to happen very soon. Of course things can change quickly in case of a mayor war or another blackswan event but otherwise i think we should rather expect even lower prices for both, gold and silver.

It doesn’t matter what the world is doing, it matters what takes place in the great US of A. Peak oil is coming to global oil production, but the U.S. Shale Oil Fields already peaked at the beginning of this year. I will put a post out about it.
Expect U.S. domestic oil production to be down 33% by 2020.

Sorry Steve. I disagree on that. It very much matters what the world is doing. Yes, PM prices are manipulated by the anglo american banking cartel, the FED and other central banks but when it comes to energy supply the US is not independent. The world economy + the global energy supply + politics determine the price for crude oil on the market, but yes, there’s evidence to assume that the cost for crude will rebound once the shale oil industry is done. That’s by the way what all other oil producing countries are waiting for.

Silverfreaky isn’t totally wrong when he states that the miners are part of the problem. If you disagree then please tell us why the miners do not organize themselves in an umbrella organization in order to fight the system. I don’t know of any such organization and if there is one, it’s completely powerless. It seems that most miners care only for themselves. FM ceo Neumeyer is the only exception as far as i know. He started an attempt to withhold silver but no other mining company was willing to participate. We can bring up a tone of arguments why those other miners wern’t able to participate but that doesn’t change the fact that they are part of the problem as long as they continue to mine more silver every year in spite of the price slump. If some of them go bankrupt which i don’t think they will, it’s also due to their passiveness in fighting a system that continues to exploit their own industry. Investors of physical metal might come to a point where they wish that miners go out of business as this would finally reduce mine supply.

Has anybody noticed what is going on in the World? i know to many the World is U.S.A.
When the other tiny part whats left of the World sends there first Atom Bomb maybe the Noise will wake you up.
There are Wars going on in the World and when it hits you,who cares why the Bankster Mafia is doing what.
WAKE UP TO REALITY!

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